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JDSU Holds 3rd Annual Analyst Day

2/19/2013 · Posted by Noël Bilodeau
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JDSU held its third annual Analyst Day in San Francisco last week. The event was well attended by financial analysts, many of whom who wrote encouraging reports about what they heard from a very confident senior management team.

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 JDSU leaders took questions from the audience during Analyst Day 2013
After CEO Tom Waechter kicked off the meeting by emphasizing our strategic initiatives and summarizing the core markets that we serve, he handed it over to the segment leaders for more insight.
CCOP – New Products Are Gaining Traction
JDSU president Alan Lowe exuded confidence about opportunities for CCOP in 2013, not only because the June quarter will see improvements as telecom budgets are finalized and pent up demand is released, but also because new CCOP products are gaining traction. Highlights from Lowe’s presentation include:
-CCOP currently has its largest ROADM design pipeline in the company’s history with 18 customer engagements (compared to 6 in 2012).
-NEMs & carriers want to customize products like TrueFlex 1X20 ROADM and Super Transport Blades to add agility to their network infrastructures.
-CCOP is excited about opportunities it is seeing in the $1.9 billion datacom market that grows at a slightly faster rate (10-15%/year) than the telecom market (9-12%/year).
-JDSU gesture recognition solutions will be in a next generation gaming platform that will generate double the value to JDSU compared to its first solution. Its  gesture recognition technology will also be incorporated into consumer electronics, PCs and tablets  that have much larger shipment potential (250-300M units/year) compared to gaming consoles (10-20M units/year).
-Commercial lasers continue to be driven by lasers for both macro and micro machining. Amada is exploring new uses for macro lasers with JDSU and micro machining is driven by the need for precision and accuracy in the manufacturing of small consumer devices.
CommTest – Growth in Mobility & Software
CommTest leader David Heard emphasized how CommTest not only test and measures networks, but is an end-to-end network and service enablement partner for service providers. Highlights from Heard’s presentation include:
-Solutions for the Mobility area are currently CommTest’s largest driver with 40 percent of sales; this is expected to increase to 60 percent over the next two years as more people use mobile devices and new services like 4G LTE. JDSU is also gaining traction from the recent wireless test acquisitions of GenComm and Dyaptive.
-CommTest expects long-term improvement to its business model as it moves to more software-based solutions that provide recurring revenue from subscriptions used by service providers and NEMs.
-JDSU intelligence-gathering solutions PacketPortal & PacketInsight are seeing early stage success. PacketInsight now has 10 customers and 14 trials while PacketPortal has 14 customers and 36 trials.
-The new StrataSync solution introduced last month will also help with network visibility issues and will drive incremental demand as another subscription-based service.
-Heard indicated that the JDSU CommTest division has a #1 position in Ethernet, fiber, CaTV, xDSL, IPTV, Storage and IP/Router transmission.
-New solutions to support small cells are also on their way from JDSU.
Optical Security Products – Cash is Still King
OSP executive Luke Scrivanich discussed how the world is still a cash-driven society and the anti-counterfeiting features that JDSU provides to help protect currency.
-China and India are important regions for OSP due to the high use of paper currency and somewhat sophisticated counterfeiting attempts in these areas.
-JDSU currency pigments and threads are expected to grow beyond the 5% long-term CAGR as they are used to support cash-centric regions and as they are integrated into new banknote redesigns.
JDSU CFO – The Sails Are Up
Our new CFO Rex Jackson closed out the meeting by emphasizing how JDSU is well positioned with a strong financial model and great operating leverage.
As Rex put it “The boat’s in great shape, the sales are up, when we catch wind we’ll be in really great shape.”
One of the financial analyst firms included this quote in their report the following day but it was so good that I had to also share it in my blog post.
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   JDSU CFO Rex Jackson

 

Hot Stories About Network Tech

2/11/2013 · Posted by Noël Bilodeau
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I was doing some leisure reading on my iPad this weekend using my favorite app called Flipboard. Many interesting articles about network technology and trends came up that I wanted to share with those of you that don’t always have time to keep up with the headlines. It's amazing what can happen in a week.

Mobile devices will outnumber humans this year.

The Guardian did a recap of Cisco's new report about mobile data, indicating that there will be more internet-connected mobile devices than people before the end of the year. Mobile video already makes up more than half of data transmitted worldwide and by 2017 will make up two thirds of it. 4G connections generated 19 times the amount of data traffic than non-4G connections, even though it’s still an early market, making up only .9 percent of all mobile connections.
iPads are now 1 in 5 of all PCs shipped.

According to a recent study by Canalys, worldwide PC shipments increased 12 percent year-over-year in the last three months of 2012 to 134 million, with the iPad alone accounting for 27 million shipments.

Orange & Alcatel Lucent implemented the fastest internet connection at 400G from Paris to Lyon.
That’s four times as strong as the previous connection between those two cities. The network uses Alcatel Lucent’s latest fiber optic technology and consists of 44 wavelengths that transfer 17.6 Terabits of traffic in total. Orange is also starting to implement its first 4G network in parts of Paris.
4G LTE networks are going nautical with the US Navy.

Crews on two US ships bound for the Persian Gulf will be able to call, text and transfer data on free  Android smartphones within a radius of 20 nautical miles. Helicopter crews will also be able to shoot videos of pirates and send that footage to ships for analysis.

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AT&T added four markets to its 4G LTE network.

According to CNET, this brings AT&T 4G coverage up to 141 markets and 170 million people. Verizon‘s 4G LTE network covers 476 markets and 273.5 people.

Online streaming of the US Super Bowl increased to 3.1 million unique viewers, up from 2.1 million.
While this is still a small slice of the 164.1 million people that watched the Super Bowl in late January, it presents a great opportunity for companies developing new ways to leverage the internet and your TV. If you were wondering, the Olympics are one of the biggest live viewing opportunities with 31.5 unique computer-based viewers last summer, according to NBC.
San Francisco 49er fans will get special mobile apps in the new stadium next year.
According to Fast Company Design, roughly 30 percent of all fans use personal mobile technology while attending live sports. The new 49er stadium being built in Santa Clara, CA will offer fans new apps to view multiple camera angles of replays, listen to radio feeds, check stadium traffic, order food and scout the lines at concessions and restrooms. I’m looking forward to that!
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JDSU & Beijing U Help to Prepare Network Engineers of the Future

1/21/2013 · Posted by Noël Bilodeau
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Last week, JDSU conducted its annual visit to Beijing University of Posts and Telecommunications (BUPT) to strengthen its partnership with one of the world’s most advanced teaching and research universities for telecommunications.

During the visit, Judy Kay, vice president of Executive Operations and Corporate Strategy at JDSU, presented new cutting-edge equipment to the joint lab at BUPT, which was accepted by Professor Ji Yuefeng, dean of the BUPT Information Photonics and Optical Communications Institute.

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BUPT is pleased to work with JDSU to support next-generation networks,” said Dean Ji, of BUPT. “The contributions provided by JDSU are of great value to experimental studies and teaching at the university. Both teachers and students at BUPT have benefited from the collaboration.”

JDSU and BUPT established an optical network test lab and scholarship program in 2011. JDSU has donated a wide range of instruments for the lab that enable live network testing for all stages of optical network development for BUPT students. This new equipment, including tunable lasers, transponders, optical amplifiers, pump lasers and modules, will be used in teaching labs and research labs to conduct optical communication transmission experiments.
 
JDSU also funds an annual scholarship program for BUPT students pursuing advanced telecommunications and engineering degrees. Currently 72 students have received the scholarship for studies and research in the areas of information and communications networks.
 
JDSU is pleased to partner with such a distinguished university to help advance learning in the telecommunications sector,” said Kay of JDSU. “We are honored to contribute to the cultivation of next-generation network talents and innovation in China.”
 
To learn more about Beijing University, please visit http://www.bupt.edu.cn/.

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JDSU Launches 2013 Tech Trends

1/15/2013 · Posted by Noël Bilodeau
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Three years ago, JDSU began a branding effort called Tech Trends to help educate people about how JDSU technology supports many trends happening now and in the future.

This year’s video includes a series of vignettes that emphasize how technology is becoming a more personalized and integrated part of how we live our lives both at work and at play. 

Some of the scenarios include people using more types of mobile technology like smart phones or wearable computing solutions like sunglasses or biometric wristbands as they go about their daily activities. Many JDSU technologies and services underpin the very networks that are making these new ways of living possible. 

Another scene shows people meeting in a conference room and one participant is able to swipe his presentation directly from a tablet onto a screen with a single gesture. Won't it be great when technology transfer becomes that seamless! In another depiction, three teenagers located in different parts of the world all play an interactive and gesture-based video game of 3D soccer together. JDSU provides core optical technology for this new and exciting market.

There are many other cool scenes to watch in the video. After you  enjoy it, be sure to take the Tech Trends survey by January 18 and you will be in the running for a random prize drawing of an iPad.

Thanks to JDSU Creative Services for doing a great job on this year's video!

 
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2012 Year in Review with JDSU CEO Tom Waechter

12/18/2012 · Posted by Noël Bilodeau
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The end of the year is a good time to reflect on past accomplishments and think about what we want to achieve in the new year.

I was fortunate enough to get some time with our CEO Tom Waechter to find out what he thinks were the highlights for JDSU in 2012 and what the big priorities are moving into 2013.

During our discussion, Tom also covered other interesting topics like collaborative innovation, employee engagement and what it takes to be a great leader.

Enjoy and happy holidays!
 
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Optical Trends 2013 - Deployment of 100G & Self-Aware Networks

12/10/2012 · Posted by Noël Bilodeau
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Contributions by Kevin Affolter & Gurpreet Mand, JDSU Optical Communications

 

Network operators today are indicating that capacity is doubling in their networks every six months. According to IDC, worldwide broadband traffic for both wireline and mobile activity could reach 116,539 petabytes per month by 2015. This continued need for bandwidth is being driven both by more people accessing  video via PCs and TVs and also by their increasing use of mobile smart devices to access information anywhere at any time. People around the world now leverage networks as a daily part of how they communicate and share information during both their work and personal lives.
To bolster and speed up network infrastructures, network operators began volume implementations of 100G optical equipment in 2012. 100G took off much more quickly than 40G as all network players bought into to the overarching need for 100G and developed a healthy supply chain with a variety of competing solutions.

 

Many experts believe 100G will play a central role in transmission much the way 10G did in the past. 100G creates a new baseline for network performance by using bandwidth in an efficient way, it aligns with 100GbE standards and the technology is expected to serve as the foundation for higher transmission line rates in the future. Implementation of 100G started as line cards much like 10G did in its day and the technology will quickly become smaller due to new developments in photonic components that drive down costs and power requirements.
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With 100G in full swing in 2013, many will look ahead to 400G for the future. Most agree that 400G will be implemented in two forms,super channels that have four dual-polarization QPSK (quadrature phase shift keying) modulation schemes encoded in the wavelengths and two wavelengths encoded with dual polarization at 16 QAM. Each has its benefits and drawbacks. QPSK modulation provides better performance over long distances but consumes more spectrum within the fiber while the 16QAM has a shorter reach but a more efficient use of spectrum. The 16QAM option will likely be a good fit for areas of high population density such as Europe and the East Coast of the United States where the end-to-end service distances are shorter. The QPSK option will be necessary for areas where distances between major population centers are greater, such as North America.  
Along with faster transmission rates, the development of Self-Aware Networks that provide a much more flexible way to manage wavelength traffic also made great strides in 2012.  These networks incorporate colorless, directionless, contentionless and flexible spectrum capabilities that let network operators automatically restore and rebalance optical network traffic and quickly provision new services. Optimizing the network in this way also helps them more efficiently manage equipment and operations, all of which result in lower overall costs.
Network operators now fully appreciate the value of Self-Aware networks and are committed to their implementation.  Expect to see deployments of these fully featured networks in 2013
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Huawei Award Reflects JDSU’s Increased Focus on APAC Region

11/27/2012 · Posted by Noël Bilodeau
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In early November, Huawei granted JDSU the Excellent Core Partner Award for its high quality and innovative network solutions. The award is the highest level of recognition that the JDSU team could ask for but also reflects an increased  focus by JDSU on the Asia Pacific region over the past few years.

In China, JDSU works with top network companies like Huawei to build 40G and 100G networks in response to growing need for bandwidth as more people use connected devices to access video, data and voice services. JDSU also provides test services that help service providers easily deploy and manage high speed networks.

Earlier in 2012, JDSU opened a broadband network development center in Shenzhen to research advanced test and measurement and optical communications solutions. JDSU also recently transferred customer support to Shenzhen so that it can provide service closer to its local customers. The talented JDSU staff work in the Nanshan High Tech Park that is at the heart of the local telecom ecosystem.
Along with providing network solutions across China, JDSU also opened a new laser center in Fuzhou last April to provide local service and support to a large base of companies in the area that use the JDSU Q-series laser for the manufacturing of small parts that go into products like smartphones and tablets.
Dedication to the Chinese region is also reflected in high satisfaction scores from both customers and employees alike. It is also a result of efforts by the JDSU Asia Council that was created more than two years ago to increase JDSU’s presence in local Asian markets, particularly in China. The council consists mostly of JDSU executives from Asia that meet quarterly at various locations throughout the continent to cultivate closer collaboration across the company.
JDSU also has Chinese offices located in Beijing, Chengdu, Guangzhou, Shanghai, and Suzhou.
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Congratulations to the JDSU Shenzhen team for earning the highly esteemed Huawei Award!

 

Mobile & Online Shopping Up Over the Holidays

11/16/2012 · Posted by Noël Bilodeau
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It looks like some of the big themes during the holiday shopping season this year are that many experts expect spending to be up over last year, consumers will flock to low-price stores like Target and Walmart, and online shopping will once again be a popular alternative to a trip to the mall.

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Who doesn’t like the convenience of relaxing on the couch while watching TV, avoiding long lines and stressed out people to order gifts online with free shipping. While I love the spirit of the holidays just as much as anyone, I'm not much for the in-store retail experience during this time if I can help it.

Mobile shopping is also on the rise and is further changing the way we buy products. The National Retail Federation estimates that online and mobile shopping will be the fastest-growing segment this holiday season at $96 billion, a 12 percent increase over last year.

For those of you that still enjoy going to stores to browse products during the holidays, many of you are probably part of a phenomenon called “showrooming.” This is where you go to a retail location and look at options while also using your smartphone to comparison shop online, read reviews and look for discounts. Quite often many showroomers wait and make purchases later at a big online retailer like Amazon.
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Retail stores realize this and are working to accommodate mobile shoppers so that they don’t miss out on this big opportunity. This season, Target is displaying what it deems its top 20 toys at physical locations and each item has a QR code on it. You can scan the code with your smartphone and buy it on the spot, either to take away that day or to have it shipped to your home for free.
Other stores are installing tablet-based kiosks that provide helpful and personalized tips (like matching a desired shirt with the right pants in a clothing store) and information about available inventory. Many stores are looking to change the in-store environment even further and make it similar to an Apple store, where roaming staff bring you your item and process your purchase with payment-equipped smartphones.
The underlying theme is that online and mobile technology are becoming an integrated part of how we buy products as well-informed consumers. People are starting to expect Wi-Fi access at retail locations to fit their new mobile shopping patterns. About a quarter of retail stores in the US currently have Wi-Fi and that figure should jump over the next few years as stores respond to the needs of mobile shoppers.
When I am forced to go to the mall, this type of streamlined and well-informed experience will be right up my alley.

Happy holiday shopping!

 

Quarterly Roundup - More Than Half of Revenue from New Products for 6th Straight Quarter

11/1/2012 · Posted by Noël Bilodeau
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Earlier this week, JDSU announced first quarter earnings for fiscal year 2013. While macroeconomic conditions are still challenging, more than half of revenue came from new products for the sixth straight quarter, proving that our focus on innovation continues to pay off. Here are some of the highlights.

JDSU signed a new customer for gesture recognition.

As applications become more integrated with how we function, they are also becoming simpler to use. I remember many years ago having to study a very thick instruction manual when I first started using a computer to understand how to perform basic tasks. Then the advent of Windows and other applications made things easier.   
Now consumer electronics companies and other tech players are beginning to integrate “sixth sense” applications like gesture recognition and voice assistants into their products to further dissolve the learning curve. This will widen the use of technology among the old, the young, and for those with disabilities.

While still in early stages, it’s exciting to see that we’ve landed a new customer in this promising area.

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Network optical solutions were popular.

One of JDSU’s big contributions to networks are optical components and systems that work deep within network infrastructures to help operators manage network traffic in a flexible way. These products are a must for highly functional networks that support unpredictable traffic patterns flowing through networks as people increasingly use connected devices and online apps to function.

Here’s how much revenue increased for three key network products compared to last quarter:

ROADMs - Up 11%
Super Transport Blades - Up 18% (within the overall ROADM product category)
Tunable XFP– Up 27%
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Special lasers for micromachining saw a 5-year high in customer demand.

JDSU makes the Q Series laser that is used for micro-machining. A few examples of micro machining include the shaping of tiny holes or slots on parts that go into products like smart phones or laptops. They are also used for the scribing of wafers that could go into things like light emitting diodes (LEDs).

I recently read that in a few decades, people will use up 10 connected devices, which blew me away. Regardless of whether or not that estimate becomes a reality, I think the need for lasers that can create the tiny parts and pieces that make up these electronics won’t be going away any time soon. And of course there’s that little group called the semiconductor industry that uses lasers to shape wafers.

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New network monitoring solution PacketPortal gained 6 new customers.

We all keep hearing about “the cloud” and “big data.” PacketPortal is one of those new revolutionary network monitoring systems that fits in here. Cheap and tiny probes throughout the network report back critical network data into a cloud-based system that lets a service provider easily pull the exact information needed to pinpoint and solve a problem.

It’s all about getting granularity instead of having to spend lots of time and money sifting through piles of data as your customer increasingly gets aggravated waiting on the other end of the phone for a solution to his internet problem.
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In closing…
Even with cautious spending right now, the long term drivers for networks and other technologies that JDSU makes remain strong. Our CEO, Tom Waechter, is always great about thanking JDSU employees at the end of the earnings call for their many accomplishments and customer focus over the quarter. Innovation is a priority across the company and that begins with original ideas that come from the many smart individuals that work at JDSU. Thanks for always recognizing that, Tom!

 

 

Connected Classrooms Create New Models for Learning

10/25/2012 · Posted by Noël Bilodeau
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While universities have been sharing some form of online content since the late 90’s, online learning is now becoming a key element in most school curriculums and is changing the way people learn. Called ‘blended learning,’ new approaches mix face-to-face instruction with online education. Cost pressures on both schools and students alike and the pervasiveness of connected devices are driving newer and more personalized models for learning.
 
In the ‘flipped classroom’ model, online systems such as Knewton allow students to learn material at their own pace and adapt to a student’s learning style. This could mean that school rooms of the future evolve from individual classrooms to larger and open study centers where students work online through a playlist of resources and then attend supporting breakout sessions instructed by teachers. Online assessments either allow them to move forward on a topic or provide immediate feedback on areas where they can improve. Students progress based on their mastery of a subject instead of based on how much time they spent on the subject.
 
Online education is of course a boon for tech companies. New and smaller tablets from Apple, Google and Amazon, also known as ‘phablets,’ are providing a cost effective and portable solution for students. Google and Microsoft both have educational application suites that have gained tens of millions of users. A startup named Clever offers a platform to help simplify the use of different types of educational software so that teachers don’t have to become IT experts. And the Bill and Melinda Gates Foundation have launched the Games, Learning and Assessment (GLASS) Lab to help understand how game-based technology can help students.
 
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These are all very cool developments but let’s not forget the less glamorous inner workings of the network. Right now, students have up to 3 devices accessing a school network at any time. Seventy-seven percent of colleges are complaining that the increasing number of mobile devices connecting to their networks is having a significant impact.
 
The network pipes, cell towers, storage area networks, and everything else that support an educational community need to be fast, flexible and interconnected in a secure and reliable way. JDSU provides optical communications technology that make up the inner workings of network infrastructures and also provides support services and software that help prevent outages and optimize how networks function (OK, my shameless JDSU plug is now complete). And companies like Cisco are providing what they call borderless networks to support connected and collaborative learning environments.
 
Personalized learning is the future of education. It will be exciting to see how the technology models evolve to support it in schools and other types of organizations over the next few years. I just may consider going back to school.

 

Constant Need for Connectivity Drives Network Requirements

10/2/2012 · Posted by Noël Bilodeau
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The European Conference on Optical Communications 2012 - it’s much easier to say ECOC - happened this past September in Amsterdam, The Netherlands. A couple of topics I kept hearing about were:

-The need for more network capacity, which is doubling just about every 6 months.

-Momentum behind 100G rollouts that are happening much more quickly than expected.

-The requirement that more flexibility be added into network infrastructures with technology like ROADMs and packet optical solutions.

All of these industry priorities reflect our ever-increasing expectations to be constantly connected to the Internet during both our work and personal lives. It’s estimated that people will be using 50 billion connected devices by 2020.

All of this puts enormous strains on the network, requiring new levels of innovation, faster equipment and a sense of cost consciousness for all parties involved in the management and build out of optical networks.
In the video clip below, network equipment manufacturers Nokia Siemens Networks and Transmode share thoughts on priorities moving into 2013, along with Stephen Hardy from Lightwave Magazine and Andrea Milani from JDSU EMEA Sales.
You can also see the segment on JDSU.tv along with other information, check out more related videos on JDSU YouTube or read additional blogs on JDSU Perspectives.
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Shift Towards More Advanced Optical Networks is Gaining Momentum

9/27/2012 · Posted by Noël Bilodeau
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Andrew Schmitt from Infonetics indicated last week at the ECOC 2012 event that over the last quarter there appeared to be a shift towards the purchase of more advanced optical networking equipment versus legacy equipment by network equipment manufacturers. This likely reflects improving sentiment in the optical industry to increase the build-out of next generation networks.

Another nice surprise that Andrew talked about is that 100G shipments exceeded everyone’s expectations last quarter and actually seem to be brushing aside investments for 40G. But Andrew says it best in his interview below.
 
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JDSU and Cisco Talk About the Future of Networks

3/30/2012 · Posted by Noël Bilodeau
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It was a busy news week in the optical communications industry with a merger announced between two of our competitors. Industry experts have been waiting for years for the industry to further consolidate to reduce the number of niche players and to help rationalize the pricing of products. We too see it as a good thing and as an opportunity for JDSU to extend our leadership.

This week we launched a video on what we do best – that is to design and implement highly differentiated products by working closely with our customers all the way from initial concept to finish.

The overarching goal is to help our NEM customers create better, more flexible and cost efficient network architectures. This in turn frees up service providers to focus on providing new services to an increasingly connected public that is driving unpredictable traffic patterns throughout networks.
 
Check out the video below to hear what Cisco has to say about working with JDSU.
 
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TrueFlex Products will Help Support Network Bandwidth Boom

3/12/2012 · Posted by Noël Bilodeau
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Last week at the OFC conference in Los Angeles, CA, optical expert Gurpreet Mand shared details about the JDSU TrueFlex product suite that is currently in trials with customers.

TrueFlex products will help network equipment manufacturers build Self Aware Networks that can handle faster data rates and that can better deal with unpredictable bandwidth demand coming from the latest new devices like smartphones or e-tablets.

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Musings From an Optical Journalist

3/8/2012 · Posted by Noël Bilodeau
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Craig Matsumoto is Managing Editor for Light Reading, one of the top online publications for the optical communciations industry.
 
In the video interview below, he shares with us the big trends being talked about during the 2012 OFC conference this week and also provides a temperature reading on the overall mood of the industry.
 
Craig also talks about how he got into journalism and the changing role of the journalist with the rise of the Internet and social media.
 
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